OPINION: Prime Minister John Key has announced more details in relation to the Mighty River Power share offer and how New Zealand retail investors will be involved, writes Eric Roy (National) in From the Beehive.
It's all about putting New Zealanders at the front of the queue, making it easy for them to buy shares and encouraging long-term share ownership.
For New Zealanders, the minimum application for Mighty River Power shares will be $1000.
That is low compared with other recent share offerings, for example by Trade Me and Pumpkin Patch.
It will help promote broad access and affordability for a wide range of New Zealanders.
New Zealanders who want to buy up to $2000 worth of shares will not have their applications scaled back. In other words, New Zealanders applying for up to $2000 worth of shares are guaranteed to receive the shares they applied for. Big institutions aren't getting any guarantees, so this is another way we're putting everyday New Zealanders at the front of the queue.
New Zealanders who keep their Mighty River Power shares for a certain length of time will get a loyalty bonus, in terms of additional shares.
We want to encourage long-term share ownership among New Zealand savers.
A retail syndicate of sharebrokers and banks has been appointed to assist with the marketing and sale of shares to New Zealanders. This syndicate will help New Zealand investors understand how they can participate in the share offer.
For example, they will tell people how they can pre-register their interest, without having to commit to buying shares.
People will be able to pick up a prospectus, and other information about the share offers, from around 500 bank branches throughout the country.
People will also be able to get information through an 0800 number, or on the internet, and they will even be able fill in an application for shares online.
The Government is making it as easy as we can for New Zealanders to take part in the share offers.
And we will make sure they get all the information they need to make informed decisions.
As promised, we will put New Zealanders at the front of the queue for shares and we're confident of widespread New Zealand ownership.
It is one part of the Government's broad programme to build a more competitive economy based on savings, exports and productive investment.
» Eric Roy is the electorate MP for Invercargill.
- © Fairfax NZ News
Would you want to be Tim Shadbolt's PA?Related story: Shadbolt's assistant 'on leave'
You won't convince Jillian Allison-Aitken that books aren't the perfect Christmas gift.
Speedway in action (+gallery+
Follow the adventures of Janelle King who is working in Kenya
What could be better than synchronised turkey giggling? Goats?
Looking for a silver lining